Find the Best Debit Card for You
Considering getting a debit card? A debit card can help you enjoy financial flexibility at checkout or when paying online without worrying about building up debt. When you use it responsibly, a debit card can be a great financial tool.
If you’re on a quest to find the best debit card for you, we’re here to help. We’ll outline what to consider when you’re shopping for and applying for a card.
Applying for the Right Debit Card
There isn’t one right card for everyone. The best card for you depends on your personal financial circumstances, spending habits and budget needs. Carefully review the terms and perks of each card before you apply for one to find the right debit card for you.
Before you apply for a debit card, make sure you know that a debit card, and not a credit card, is the right choice. Here are a few differences.
| Debit Cards | Credit Cards |
| Attached to a checking or savings account or an account that holds prepaid amounts, which means you can only spend money you already have. | Attached to a line of credit, which means you can spend money on credit that you pay back later. |
| Keeps you from accumulating debt. | May lead to debt accumulation if you don’t pay balances off monthly |
| Doesn’t tend to impact your credit one way or the other. | Paying on time and managing balances responsibly can help your credit, but missing payments or running up high balances can hurt your credit. |
| No interest charges. | Interest charged if you carry balances month to month. |
| Minimal fees. | May include additional fees. |
| Fraud protections often limited to those associated with checking and savings accounts. | Credit cards tend to provide more robust fraud protections. |
Debit cards can be a great choice if you want the flexibility of using a card at checkout but don’t want to worry about debt or interest. They may also be an option if you don’t have enough credit history or a high enough score to get a card with a decent credit limit or terms.
What to Look for when Applying
As previously noted, everyone has different financial and credit needs. So the card you’re looking for should be based on your specific situation. Some things you might want to consider when applying for a debit card include:
- Requirements for eligibility. Debit cards typically require that you sign up for or have some type of checking account. In some cases, you may be able to transfer money to the card and use it as a prepaid credit card. The company providing the debit card may have specific eligibility requirements, such as having a valid U.S. address or even an address in a certain state, so read those carefully before you apply.
- Fees you might pay. While debit cards may tend to come with fewer fees on average than credit cards, you may still pay use fees, annual fees or fees for overdrawing your account. Make sure you weigh the cost of fees before you determine which card is right for you.
- What credit history or score is required. Debit cards aren’t credit, so you may not need a credit history to get one. Some banks may check your score to determine what type of services or card options they provide you, so make sure you know whether a credit check is part of the deal before you apply.
- Your spending needs. Debit cards come with varying spending limits, such as max dollar amounts per day. Read the fine print to understand whether a card will work with your spending habits.
When Is the Best Time to Apply?
The best time to apply for a debit card is before you need it. Local banks may provide you a debit card immediately when you sign up for an account. But if you apply for an online debit card, you may need to wait a few weeks for it to arrive.
Should You Apply for More Than One Debit Card?
Since many debit card providers don’t pull your credit, you won’t get hit with hard inquiries if you apply for multiple cards. There’s also no limit to how many checking or debit card accounts you can have, though the more accounts you must manage, the more complicated your personal finances can get. It may be a good idea to keep debit cards and checking accounts to a few that you can easily manage.
What to Do if You’re Rejected
If you apply for a debit card and are refused, first find out why. Talk to the bank’s customer service department to get more details, or wait for a letter telling you why you were denied. Some reasons may be related to adverse credit history, a history of bounced checks or not meeting requirements such as living in the right country or state.
If you were denied based on credit issues, get a copy of your credit report to find out what’s going on. You may be able to dispute inaccurate negative items on your credit report or otherwise work on your credit. Then you can apply again for a debit card with better results.
